Check in before checkout to save

By Asher Moses

Traditional retailers hope to turn the tide against online shopping by using geo-location smartphone features to lure consumers back into stores with targeted deals.

Facebook users in Australia can now obtain discounts and special deals from stores around the country after the launch of Check In Deals today. 7-Eleven, Commonwealth Bank, KFC and Westfield are the only businesses to have signed up so far.

The banner outside the KFC George Street store today.

Smartphone users have for some time been able to "check in" to locations - restaurants, bars, clubs, cafes, shops, etc - to inform their Facebook friends where they are. But from today there is a new benefit from checking in - cheaper stuff - which the social networking site hopes will overcome what has become known as "check in fatigue".

The Foursquare app has been offering similar functionality to Australians with local deals from LivingSocial, while QuickerFeet aims to launch an app allowing local businesses to spruik deals to smartphones users in their area.

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An example of Facebook Check In Deals in action.

"The general trend for geolocation-aware deals is big. Location based services are pitching to the big end of town," said George Patterson Y&R social media strategist Tiphereth Gloria, adding the trend had been developing in the US for some time.

"I imagine the cost to promote a deal here will not be cheap so will really only be relevant for large national and international brands with large Facebook fan bases."

When users check in to a participating store, a coupon comes up on their mobile screen which they can then redeem.

From today, checking in at any 7-Eleven store around the country will net users a 450ml Coke for $1. Commonwealth Bank is giving "free movie vouchers for a year" for those who open up an account, while those checking in to any KFC store get a VIP coupon for one large Krusher and one regular chips for $4.45.

Angus & Coote and Cotton On are the two Westfield retailers to have signed up so far. The former is offering 30 per cent off full-priced jewellery for a week from today, while the latter will offer 30 per cent off all full-priced items from next Monday.

Westfield's general manager of marketing, John Batistich, said Check In deals would give retailers the opportunity to target shoppers with localised deals and bridge the gap from the web to the stores.

James Griffin, partner with social media intelligence firm SR7, said the initiative was a good example of how the retail industry could embrace new technology and stop the slide in profits from people buying online.

"The Facebook check in deals connect 'online activity' with 'real world' purchasing decisions. If done correctly, these deals will entice shoppers to visit shops," he said, adding that businesses needed to ensure all floor staff were aware of the deals.

"It illustrates the ability of social media to help turn the tide against online shopping."

There are four types of deals businesses can offer: individual (e.g. 20 per cent off or free gift with purchase), friend (deals to groups who check in together), loyalty (rewards for 2-20 check ins at the same place) and charity (business can donate to a charity each time a user checks in).

The new Facebook feature comes amid a sustained assault on bricks and mortar retailers by online stores. One of the last remaining benefits of visiting a store - the ability to try things on - last week began to evaporate with the advent of virtual dressing rooms.

Businesses in Australia have been reluctant to embrace mobile to date. A study by user experience firm Stamford Interactive, which examined 100 prominent Australian businesses, found 74 per cent of them did not have a mobile-optimised website.

The retail industry showed the worst results, with only 20 per cent of sites being mobile-ready, which Stamford said may explain poor retail sales.

"It's like having a storefront with blacked-out windows," says Stamford director Lisa Wade.

"If you're not mobile-friendly, your customer will simply go on to the next place of business. This is a serious concern for Australian businesses who must adjust their digital strategies to service their rapidly increasing mobile customers, or risk losing business to more forward-looking competitors, particularly overseas.''